The insurance group has launched Activa Makala, mobile micro-insurance, to cover the loss of income of the most vulnerable layers of the population and increase the proportion of individuals among its policyholders.

This was done in partnership with telecom operator Orange.

The mobile insurance takes its first steps

Activa launches mobile micro-insurance in bringing to market the Activa Makala. It is intended to prevent temporary or permanent impairments from the low-income population, Makala (term for the donut in several languages of southern Cameroon) promotes the payment of premiums and claims settlement via Orange Money, the 'electronic' wallet of the Orange operator.

Blanket

In return for monthly premiums of 600 FCFA or 1,000 FCFA (1.52 Euro), the insured is covered for loss of income due to temporary incapacitation. It also offers personal assistance or cover household expenses in the case of a permanent disability.

The goal, according to the forecasts of the Cameroonian group is to reach 30,000 people in the first year for a turnover of 150 million FCFA, which will double in the third year.

Individuals

Activa wants to densify the retail market. The penetration rate of personal insurance in Cameroon's population is marginal while that of mobile phones is ranging above 70%, the margin for improvement is considerable, Activa does not exclude export of the product in its subsidiaries if the Cameroonian trial proves successful.

"The structure of our portfolio is 15% specific risk, against 85% of business risks. With a growth of two percent per year, we believe the risk of individuals will move from 30-40% in the coming years," said Richard Lowé, CEO of the Cameroonian insurance group.

In Cameroon, Activa Group achieved a turnover of 23.8 billion FCFA (€ 36.28 million) in 2014.